Questions for Financial Wizzes/Fund Managers

Bullion Bill wrote:

Call me a doom and gloomer, but you can only fool the people some of the time.... well, at least for several hundred years, or more. What good is "money" (paper) if not for the acquistion of assets?

Remember this when it comes to land :

"They ain't making any more of it" - Will Rogers

Well, to carry your point further, really the only asset that is worth any value in and of itself without someone assigning a value to it is land. Gold is just scra metal that over the years people have deemed acceptable as 1)pretty, and 2)a means of exchange or currency.

Kennedys? wrote:

Well, to carry your point further, really the only asset that is worth any value in and of itself without someone assigning a value to it is land. Gold is just scra metal that over the years people have deemed acceptable as 1)pretty, and 2)a means of exchange or currency.

A lot brighter people than yourself saw #2 on your list as pretty damn important for a sound currency.

Even Alan Greenspan, before his road to Damscus moment, saw the gold standard as CRITICAL to an honest economic system.

Of course it would be a hell of a lot harder for the government to finance its empire building, welfare state with a sound currency.

The creation of the Federal Reserve in 1913 wasn't enough for the money destroyers. The destruction of the gold standard allowed the bankers to unleash their money madness on the vast majority of non gamblers and non financial market manipulators, which is virtually everybody, save the pseudo financial whizzes.

If "money managers" were honest, they'd tell thier clients that the money they're managing isn't worth anymore than the paper its printed on.

The financial markets have been corrupted beyond repair, with TSHTF only a matter of when not if.

Buy commodities--i.e., buy pieces of the "land".

Liquidate all your paper lions, including your so called "money managers". Break away!

fv hayek wrote:

If "money managers" were honest, they'd tell thier clients that the money they're managing isn't worth anymore than the paper its printed on.

They should just send it all to me. I'll get rid of it for them.

Why do "gold bugs" always sound like the people who talk about government conspiracies to suppress reports of UFO sightings in Roswell?

oldguy wrote:

]They should just send it all to me. I'll get rid of it for them.

Why do "gold bugs" always sound like the people who talk about government conspiracies to suppress reports of UFO sightings in Roswell?

oldguy, there's no fool like an old fool.

Don't worry, you'll still have a large supply of true believers to fund your fraud. If not, there's always Vegas.

You are right brusier,

To buy gold now is foolhardy. It just hit its highest value in 5 years. The time to buy would have been 5 years ago. If you have some gold now, now is the time to sell. Also, as you said, it is NOT a good long-term investment. Owning gold is for people who don't trust OR understand the value of stocks. People can see gold but can't see the minds of an employee in a up and coming company.

Flagpole Willy wrote:

You are right brusier,

To buy gold now is foolhardy. It just hit its highest value in 5 years. The time to buy would have been 5 years ago. If you have some gold now, now is the time to sell. Also, as you said, it is NOT a good long-term investment. Owning gold is for people who don't trust OR understand the value of stocks. People can see gold but can't see the minds of an employee in a up and coming company.

Then buy silver:

Buy gold and land. There is nothing backing up US Currency and the world is run by the Rothschilds and Rockerfellers.

Who are these people who think the stock market is smoke and mirrors? The average investor (small guy) has the wrong psychology for the most part. He jumps in to the NEXT BIG THING far too late (Internet stocks in 1999-2000, real estate today), panics at the bottom, and sells at a loss. Staying invested over the long term is the way to go.

The big hitters have both financial understanding and the access to financial managers and products that small investors do not have. They are buying when everyone else is selling in a panic. They will do far better than 10% a year in the long run. Good private equity deals and top hedge funds provide excellent returns. The little guy is left with mutual funds, which have many built-in disadvantages to start with.

oldguy wrote:

fv hayek wrote:

If "money managers" were honest, they'd tell thier clients that the money they're managing isn't worth anymore than the paper its printed on.

They should just send it all to me. I'll get rid of it for them.

Why do "gold bugs" always sound like the people who talk about government conspiracies to suppress reports of UFO sightings in Roswell?

I agree. For all you "buy gold" people who think paper money is worthless, please do send all your paper money to me. I'll be happy to dispose of if it for you.

"The completion of the gold standard abandonment was in 71. The first installment was in 33. Of course, the mounting Vietnam War deficits helped the inflationary activity you've correctly pointed out in the mid 60's. Your facts are plain wrong in the rest of your post."

Actually, i am completely right on all of my post. Your graph that you present shows the price level, not the RATE of change in prices (a.k.a. the rate of inflation.) If the "mounting Vietnam War deficits are to blame for the surge in prices in the late 1960s, as you say, than why didn't the even larger deficits (both nominal and as a percentage of GDP) during the 1980s and up until the late 1990s cause a surge in inflation?

Good comments Bruce.

The only thing I'd add is that one may want to have one asset allocation. For example, they may want based upon how much risk they want to incur to set up an asset allocation of 80% domestic equity, 5% precious metal 15% income producing bond.

If one does want such a portfolio (not saying this is the best for everyone), one should put the bond portion in their tax deferred account such as a 401(k) so the won't have to pay taxes each year on their earnings and keep their vanguard 500, which is extremely tax efficient in his portion that isn't tax deferred - if they are limited in how much they can set aside in a tax deferred account each year.

Anyone who has a matching portion on his 401(k) and doesn't contribute at least to the match is missing out on some free money.

3 Timer wrote:

Anyone who has a matching portion on his 401(k) and doesn't contribute at least to the match is missing out on some free money.

"Free money?"

No such thing.

Matching adds incentive for more employees to contribute so higher paid employees can contribute more into the plan without worrying about discrimination tests.

Contributing to the match is a sure way to get a 100% investment if they match 100%.

good thing im marrying a rothschild...

bump for a great thread